Zakaut Mortgage Program in Israel
A “mortgage zakaut” is eligibility-based government housing assistance administered through the Ministry of Construction and Housing and participating mortgage banks.
Known limits: The amount, rate and conditions depend on the current program and personal eligibility certificate.
Update policy: Material rule changes and corrections are logged on the version-history page.
How the process works
- Register through a mortgage bank. The applicant is identified and submits the required documents.
- Data is transferred for eligibility review. The Ministry checks the information under the applicable rules.
- Receive a teudat zakaut if approved. The certificate states the level of assistance, conditions and restrictions.
- Combine with other financing if needed. The property price may require a commercial mortgage and personal equity.
- Complete bank and property approval. Eligibility assistance does not override appraisal or regulatory limits.
The Bank of Israel consumer guide states that the eligibility-loan amount is determined under government criteria. Its interest is 0.5 percentage points below the published average rate on CPI-indexed bank mortgages, or 3%, whichever is lower. The guide also states that early repayment of an eligibility loan is exempt from early-repayment fees.
How the assisted-loan terms are set
- Eligibility and amount: the Ministry’s rules and the issued certificate determine whether assistance is available and the approved amount.
- Interest: use the rate stated in the current certificate and bank documents; do not rely on an old example or a rate copied from another borrower.
- Term, linkage and repayment: these must be read from the actual assistance and loan documents because the headline rate alone does not determine the monthly payment.
- Commercial balance: any additional bank mortgage remains subject to ordinary underwriting, appraisal and regulatory limits.
- Early repayment: the Bank of Israel guide describes the eligibility-loan portion as exempt from early-repayment fees; confirm how the bank separates that portion from the commercial mortgage.
Treat the teudat zakaut as an input to the financing plan, not as a promise that the full property purchase can be financed.
Why you should apply early
The Ministry warns that eligibility checks can involve several authorities and may take time. Do not sign a transaction assuming assistance that has not yet been issued.
Questions to ask the bank
- Which documents are needed for the eligibility application?
- How long is the certificate valid?
- What assistance amount and terms are shown?
- Can it be combined with the proposed commercial mortgage?
- How does it affect monthly payment and early repayment?
- What must be completed before contract payment dates?
Official source: Ministry of Construction and Housing mortgage-assistance guide and mortgage assistance services.